Some Behavioral Economists Recommend Mechanisms That Are Meant to Help

question 78

Multiple Choice

Some behavioral economists recommend mechanisms that are meant to help people actually do the things they say they want to do, but often don't. Such mechanisms are often called:

• A)savings rates.
• B)charitable donations.
• C)self-control.
• D)commitment devices.

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Definitions:

Salaries

Payments made to employees for their services over a specified period.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; also known as the bottom line.

Income and Losses

Represents the financial performance of a business, where income refers to the earnings and losses indicate the expenses exceeding earnings over a period.

Original Investments

The initial amount of money put into purchasing assets or starting a venture, setting the foundation for future growth or income.